mac bank research link

Just posted on the GIR site today.

http://www.giralia.com.au/reportDocument/Macquarie%20GIR%2004Mar10.pdf

Commentary on management is minor but fair IMO. There are different skills sets when it comes to production. It shouldn't be forgotten however that GIR's management have built the land bank to where it is today because of their expertise and ability to make strategic plays (particularly when resources wasn't the 'hot' thing)

It makes mention that management is more focused on reducing capex and having higher opex. I think this is a rather generalistic comment and assumes each project will be run exactly like this, whether it be in the next 18 months or next 10 years.

GIR seems to be consistently delivering the message of getting real cash out of 1 or 2 of its near-term production projects (which is likely to involve high opex) and then leverage off this position without diluting itself significantly.

As Mike Joyce has mentioned a few times, there are projects that are 'company making' and I would imagine that these would be the high capex projects. Given its portfolio of projects why wouldnt you exploit a couple of near term projects for the gain of others. Just good management IMO.

Good to see anyways Macquarie starting coverage on GIR. It needs this level of interest.